# Madagascar

 Country code: MG · Currency: MGA · Language: French

**Pros**
- Low labor costs and significant opportunities for private investment in emerging sectors
- Tax incentives for export-oriented enterprises within designated free zones
- Minimal government oversight in remote regions allowing for autonomous lifestyle and resource development

**Cons**
- Pervasive systemic corruption and weak judicial protection for private property rights
- Severe infrastructure deficits, particularly regarding unreliable power grids and dilapidated road networks
- Persistent political instability and rising security risks impacting long-term business predictability

Long story short: Here, tax administration is basically a fiction: nobody's really coming after you, unless you forget to grease the right palm at the right moment.

The flip side: corruption runs through everything, from customs to permits, the banking system stays fragile and wary of foreigners, roads outside the capital are in rough shape, and power cuts punctuate your days even in the nice neighborhoods.

Beyond that: security stays decent in upscale areas like Ivandry, the food blends French and Malagasy influences beautifully, the landscapes rank among the wildest on the planet, and the cost of living is absurdly low.

## Will your income be taxed?

Long story short: YES, FAIRLY.
Income tax in **Madagascar** sits at a middling **20%**.

Residency follows the standard international playbook (day counts, economic ties, habitual abode), so if you actually live here, you pay the full menu. No more, no less.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 0 → 20% | progressive · 5 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 81 | exempt |
| 81 – 92 | 5% |
| 92 – 115 | 10% |
| 116 – 139 | 15% |
| 139 + | 20% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | does not exist here |  |
| Economic interest | does not exist here |  |
| Family centre | does not exist here |  |
| Habitual abode | exists here |  |
| Extended-stay test | does not exist here |  |

## Will your wealth be taxed?

Long story short: YES, FAIRLY.
**Madagascar** takes **20%** when you sell, and that's the whole story: no annual wealth levy, no inheritance regime.

The state waits for the value to move before reaching for it; while it sits, nobody touches it.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 20% | flat |
| Dividend tax | 10% | flat |
| Interest income | NONE | flat |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | UNREGULATED | Fallback rate: 20% · Cryptocurrencies are not specifically regulated in Madagascar. The Central Bank (Banky Foiben'i Madagasikara) has issued warnings stating they are not legal tender but has not banned them. In the absence of specific crypto legislation, the General Tax Code (CGI) applies general rules where gains from the disposal of movable property (plus-values mobilières) are subject to a flat tax rate of 20% under the Impôt sur les Revenus (IR). |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: NO.
Corporate tax in **Madagascar** is **20%**, but the rate isn't what hurts. *Misuse of corporate assets is a criminal offense*; the textbook case is the French *abus de biens sociaux*: spend your own company's money on yourself and you can end up prosecuted, even as sole shareholder, because the company is a separate legal person and your consent means nothing.

And the *registries are public*: your name as shareholder, free to browse.

For an owner-operator, those two together weigh far more than the rate, and unlike the rate they don't negotiate. Run it clean and you're fine; run it casually and you'll get burned.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 5 → 20% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 92,400 | 5% |
| 92,400 + | 20% |

| Metric | Value | Detail |
| --- | --- | --- |
| VAT standard rate | 20% | 2 distinct tiers in force |

| VAT family | Category | Rate |
| --- | --- | --- |
| Food & drink | food | 20% |
| Food & drink | non-alcoholic | 20% |
| Food & drink | alcohol | 20% |
| Print media | books | 20% |
| Print media | ebooks | 20% |
| Print media | newspapers | 20% |
| Culture | cultural events | 20% |
| Culture | cinema | 20% |
| Culture | theatre | 20% |
| Culture | museums | 20% |
| Culture | sports | 20% |
| Transport | public transit | 20% |
| Transport | rail | 20% |
| Transport | air | 20% |
| Hospitality | hotels | 20% |
| Hospitality | restaurants | 20% |
| Hospitality | takeaway | 20% |
| Health | pharma | 20% |
| Health | medical dev. | 20% |
| Energy | electricity | 20% |
| Energy | natural gas | 10% |
| Energy | district heat. | 20% |
| Energy | domestic fuel | 20% |
| Utilities | water | 20% |
| Utilities | waste | 20% |
| Clothing | kids clothing | 20% |
| Digital & telecom | digital | 20% |
| Digital & telecom | telecom | 20% |
| Digital & telecom | broadcast | 20% |
| Construction | construction | 20% |
| Construction | social housing | 20% |
| Agriculture | farm inputs | 20% |
| Agriculture | animal feed | 20% |
| Personal services | funeral | 20% |
| Personal services | hairdressing | 20% |
| Finance | insurance | 20% |
| Finance | financial svc. | 20% |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | CRIMINAL | criminal liability · Article 931 of Law No. 2003-036 of January 30, 2004, on Commercial Companies · Madagascar adheres to the principle of the autonomy of the legal entity, meaning company assets are legally distinct from those of the shareholder. Under Article 931 of Law No. 2003-036, a manager (including a sole shareholder-manager) who uses corporate assets for personal gain in a manner contrary to the company's interest commits a criminal offense (Abus de Biens Sociaux). This liability applies regardless of the company's solvency or the sole shareholder's consent, as the law protects the corporate interest as an independent legal value. |
| Shareholders privacy | PUBLIC PAYWALL | Registre du Commerce et des Sociétés (RCS) |
| Directors privacy | PUBLIC | Registre du Commerce et des Sociétés (RCS) |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Société à Responsabilité Limitée (Limited Liability Company). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Government Registration & Registry Fees (RCS, STAT, NIF) | USD 15 |  |
| Provisional Income Tax (Acompte Provisionnel d'Impôt sur les Revenus) | USD 74 |  |
| Professional Legal & Incorporation Services | USD 577 |  |
| Notary and Documentation Legalization Fees | USD 35 |  |
| Total | USD 701 |  |

## A good fit for a holding?

Long story short: NO.
**Madagascar** has no treaty network at all, which buries the holding question, full stop.

Every dividend in or out eats the statutory withholding at full rate, and no domestic regime can patch a hole that sits on the source side. Don't park a holding here.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | 95% | 75% holding |
| CFC rules | NONE | no controlled foreign corporation regime · foreign-source corporate income out of scope |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 10% | non-resident outbound |
| WHT · interest | 20% | non-resident outbound |
| WHT · royalties | 10% | non-resident outbound |
| Tax-haven WHT | NONE | no punitive rate on record |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 0 | active |
| Treaties pending | — | in negotiation |

## Easy to come and go?

Long story short: SOME.
**Madagascar** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | FORBIDDEN | naturalisation requires renouncing existing citizenship |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 5 years | available path to naturalisation |
| Marriage | — | not available |
| Birth | — | not available |
| Descent | — | not available |
| Investment | — | not available |

## Is your money watched?

Long story short: NO.
Foreign tax offices see next to nothing of what you do in **Madagascar**: it has signed *few exchange frameworks*.

But the *corporate registries are public*: your shareholdings and directorships are one search away for anyone curious. Invisible from abroad, on display at home.

**Multilateral reporting frameworks — 1/9 active · 1 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | None | — |
| CARF | None | — |
| FATCA | None | — |
| MLI | None | — |
| BEPS | None | — |
| MAAC | In force | 2025 |
| GLOBAL FORUM | Signed | — |
| EOIR | None | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: NO.
**Madagascar** sits on no major blacklist, though it's *outside* the FATF club.

Some counterparties will run a bit of extra due diligence out of habit, but there's no formal stigma: you won't get hassled for dealing with it.

**Blacklist exposure — Clear everywhere**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: NO.
Press freedom in **Madagascar** is *locked down* (RSF rank **\#113**). Independent media and civic space operate under pressure (when they operate at all), and that kind of grip usually spills over into economic life too.

Small mercy: crypto isn't formally banned.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 113/180 | score 50 · ↓ 13 ranks year-on-year |

Central bank digital currency

    Program Status Cross-border Sources     e-Ariary

The main goals are to improve financial inclusion, to reduce costs for cash management and to strenghthen monetary sovereignity.

Banky Foiben'i Madagasikara

   RESEARCH   —   [announce →](https://www.prnewswire.com/news-releases/ecurrency-cbdc-technology-in-madagascar-for-eariary-project-at-banky-foibeni-madagasikara-bfm-302597601.html "Announcement")

 programs 1

## Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in **Madagascar**. *Stripe* won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. *Amazon* doesn't deliver either.

Some secondary services run (**3/11**), but for an online business this is swimming against the current.

**Accept payments — 1/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Not available | wallet payments |
| Adyen | Not available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 1/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to Madagascar. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

 [   Egypt EG  → ](https://stateless.sx/en/country/eg) [   Botswana BW  → ](https://stateless.sx/en/country/bw) [   Bangladesh BD  → ](https://stateless.sx/en/country/bd)

  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

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  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

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